Commercial property investment in Central and Eastern Europe (excluding Russia) has increased by 11 per cent year-on-year, according to a recently-released report from CBRE.
The Polish market is performing well, with €1,781 million invested in the nine-month period to the end of September 2014, but the limited supply of prime assets is forcing investors to look elsewhere.
Consequently Romania, Hungary and the Czech Republic have seen increases of 215 per cent, 125 per cent and 11 per cent, respectively.
Investment in the Russian market has decreased significantly, dropping by 45 per cent in the nine-month period to the end of September.
Mike Atwell, CBRE’s head of CEE Capital Markets, commented on the preliminary results, saying, that that strong interest has been driven by low interest rates and “increased allocation towards the asset class.”
He also said that he believes the last quarter of the year will be a strong one, with no signs of a slowdown in activity. Mr. Atwell anticipates a continued increase in investment volumes for the New Year.
